The PC Jeweller board today approved a buyback of shares worth Rs 424 crore amid a sharp plunge in stock price in recent weeks.
The company will buy back 1.21 crore shares at Rs 350 apiece, the Delhi-based jeweller said in its filings with the stock exchanges. That’s a premium of 67 percent over today’s closing price on the BSE. The buyback comprises 3.07 percent of the total paid-up equity capital of the company, the filing added.
Promoters and promoter group companies will not participate in the proposed buyback.
The board also approved the appointment of IDBI Capital Markets and Securities Ltd. and Corporate Professionals Capital Pvt Ltd. as merchant bankers.
The buyback comes at a time when the stock has fallen to its 52-week low of Rs 95.05 hit on May 3 this year after Fidelity-managed funds sold shares through open market.
The company has maintained that its fundamentals remain strong. “We would like to assure our investors, shareholders and other stakeholders that there is nothing wrong with the company and its operations, the fundamentals of the company remain strong and it continues to move ahead on growth path,” the company had said in a recent filing.
PC Jeweller has more than 100 retail stores across the country. The stock touched a 52-week high of Rs 600.65 apiece on Jan. 16 this year before witnessing a severe drubbing.